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Sunday, February 9, 2014

The general ledger is basically the end result of the company's accounting process, and is the source from which all the company's financial reporting is generated. Therefore, the general ledger accountant is responsible for ensuring that all business transactions have been properly accounted for and accurately and completely reflected on the company's books. A general accountant may also be referred to as a corporate accountant or management accountant.
What Does the General Ledger Accountant Do?
The role that the general ledger accountant plays, and the range of functions performed and level of responsibility assigned, will depend on the size and nature of the organization. In a larger organization, a general ledger accountant may specialize in certain areas of the overall accounting operation, while in a smaller organization, the position may involve a wider range of duties and responsibilities.


Day-To-Day Bookkeeping

The general ledger accountant may be directly involved in the day-to-day bookkeeping process, that is, he or she may be responsible for actually recording all the business transactions in terms of purchases and sales, cash receipts and disbursements, payroll, and other accounting entries. Or the general ledger accountant may have a supervisory role and be responsible for directing other accountants or clerks, and reviewing the bookkeeping.

Reviewing and Adjusting Accounts and Making Journal Entries-
The general ledger accountant reviews accounts and makes any necessary adjusting entries. These may include amortization of prepaid charges such as insurance premiums, accruals of expenses incurred but not yet billed, such as materials and supplies received, utilities used, and employee benefits such as vacations. Journal entries are accounting entries made in the general journal, as opposed to the purchases and sales, or cash receipts and disbursements journals. Entries made to the general journal are then posted to the general ledger, and the individual account balances are updated. Journal entries include entries to record depreciation on fixed assets, such as the company's plant and equipment, entries to record the cost of sales based on purchases, manufactured products, and changes in inventory balances, and entries to record accrued or deferred income taxes, based on net taxable income or loss.

Duties

Some of the duties commonly performed by the general ledger accountant include:
-Review of accounts receivable and accounts payable vouchers.
-Preparation and control over the monthly accounting closing schedule.
-Review of the purchases and sales journal and the cash receipts and disbursements journal.
-Supervision of the payroll process and review of the payroll register.
-Calculation and recording of depreciation, amortization and depletion.
-Determination of the cost of goods sold and inventory balances.
-Review of the trial balance.
-Account analyses and reconciliations.
-Bank reconciliations.
-Preparation of information required for internal management reports and outside reporting.
-Budget control and variance analysis.
-Compilation of information and preparation of schedules required by internal and independent auditors.
-Preparation of tax returns.


How Are The Working Conditions?

A general ledger accountant works in an administrative role, most of the time in an office environment with a normal business work schedule. Depending on the responsibilities of the particular position, overtime can be expected, especially during critical periods when it is necessary to meet a deadline, for example to close the books for the month or year, to prepare financial reports, or to do tax returns. Depending on the structure of the organization, there may be occasional travel to subsidiary companies, in the case of a corporate accountant working in the home office, or to manufacturing plants or other job sites.

Processing Information

The general ledger accountant works with information contained in documents and computer systems. Managing a large quantity of information is an integral part of an accountant's work. Accounting requires the systematic and consistent application of accounting principles, standards, and practices, and the general ledger accountant, as the person responsible for the accuracy and completeness of the company's books, must remain focused in comprehending, analyzing and interpreting data. The work is often repetitive, involving long hours going over financial information, but at the same time, the general ledger accountant position is a professional-level position that requires criteria and discretion in processing the information.

Information Systems

Much of a general ledger accountant's work is done on a computer, including the accounting system itself, as well as word processing and spreadsheet programs. E-mail and Internet applications are also important parts of the general accountant's work routine.

Supervision, Teamwork and Relationships

General ledger work combines a significant amount of time working alone, under self-direction, within the framework of established company and accounting department parameters. But this position also involves working closely with other members of the accounting department in a teamwork role. The general ledger accountant usually reports directly to a higher-level position within the department, such as the accounting manager, controller, or finance and administration manager. There is also a considerable degree of interaction with other departments within the organization, to explain accounting information requirements, to obtain that information, and to communicate and enforce internal control procedures. The general ledger accountant may also have a significant role in presenting, reviewing and explaining financial statements and other reports to management.

What Are The Requirements?

Qualifying as a general ledger accountant normally requires a combination of education, experience, and organizational skills and administrative abilities. Each particular company will define its own specific requirements, which may include a degree in accounting, a CPA license, and/or prior accounting experience.

Education

A general ledger accountant is a professional, who must have a good command of generally accepted accounting principles, standards, practices, and procedures. Therefore, a college degree is usually required. Depending on the size of the organization, there may be different levels of general ledger accountants, from entry-level positions to senior positions for accountants with more experience. A person with experience in accounts payable or receivable, bookkeeping, payroll, or other administrative functions may be able to work in an entry-level position, performing certain aspects of general ledger accounting. This person may be working in accounting while pursing an accounting degree, and will be able to move up to positions of more responsibility once a degree is obtained.

Interpersonal and Communications Skills

A general ledger accountant often supervises persons in other accounting and administrative positions, such as accounts receivable and payable, bookkeeping and payroll, so good interpersonal skills and leadership qualities are needed. And, due to the interaction with other members of the accounting department, good teamwork characteristics are important.

The general ledger accountant should possess good communications skills, since this position will have contacts at various levels of the organization, including with upper management and members of other departments, as well as a coordination and cooperation role with internal and independent auditors. This position also involves communicating and coordinating with third parties, including banks, customers and clients, vendors, reporting agencies, taxing authorities, and other governmental and regulatory agencies.

Experience

A position as general ledger accountant can be an entry-level position, depending on the requirements of the organization. In a larger organization, there may be different levels of accountants, and as experience is gained and performance is demonstrated, there can be opportunities to move up within the accounting department. In many organizations, experience is a prerequisite for assuming a general ledger accountant position. Also, accountants may begin their careers working in a public accounting firm, and then make the transition to private corporate accounting.

CPA or MBA

Many companies establish an accountant's status as a Certified Public Accountant (CPA) as a qualifying criteria for professional accountants, showing that they have completed the necessary education and experience requirements, and have proven their knowledge of the principles, standards and practices that apply to the accounting profession. Other companies, while not making it a requirement, may give preference to a CPA or to a CPA candidate.

Likewise, a Master's Degree in Business Administration (MBA) may be a qualifying criteria for employment in some companies, and may constitute a valuable, but not necessarily required qualification in others.

What Are The Career Possibilities?-

Experience as a general ledger accountant can lead to different career paths, within the same company or in another company, in several different roles.

In the Company

Persons who start out as entry-level accountants can move up to higher-level positions in the company's accounting department, as a senior-level accountant, accounting manager, controller, or finance manager. General ledger experience could also lead to a role in financial reporting, budgeting and cost control, or in business planning. And, accounting experience, combined with the necessary aptitude, experience and leadership qualities and capabilities, can also lead to a career in management.

In Auditing

General ledger accountants may choose to use their experience to pursue a career in auditing. The knowledge and experience gained while working in a company's accounting department can make that person a good candidate for a position as an internal auditor. Another career direction would be to move on to a position as auditor with an independent auditing firm.

Tax

General ledger accountants may find they have a particular interest and ability in tax work. Larger organizations may have a separate tax department, thus opening up this possibility within the same organization. Or, accountants may choose to work as tax specialists in a public accounting firm, or start a tax practice of their own.

Information Technology

Systems development can be another career route for a general ledger accountant who prefers the information technology aspect of the work. Knowledge and experience gained as a user, together with education and ability in information technology can be good preparation for a career in systems development, oriented toward the accounting and financial field.